Clifton Star Res Inc CFMSF

LOM gives $5.96 target for Clifton Star

[tooclassy]

Thursday, May 24, 2012
Research Spotlight
Copyright © 2011, Loewen, Ondaatje, McCutcheon Limited. Member CIPF and IIROC.


Clifton Star Resources Inc. (CFO-TSXV)1
Target:$5.96

May 23/12 closing price:
.92

Michael Fowler, M.Sc MBA

416-964-4440

Clifton Star Reports A 3.4 Million Ounce Resource Grading 1.79g/t At Duparquet-Expected- Positive : The company tabled the results of a NI43-101 resource estimate, which was authored by InnovExplo Inc. The results show an in-pit resource of 2.4 million ounces at a cut-off grade of 0.6 grams per tonne. This would equate to a resource which potentially could be mined by open pit. In addition an underground resource of 845,000 ounces was estimated at a 2 grams per tonne cut-off. We had been estimating a potentially mineable scenario of between 2.5 to 3 million ounces in a global resource base (which would include resources outside the above potentially mineable parameters) of about 5 million ounces. The estimators did not disclose a global resource, but we feel that it would have been close to that number. Importantly about half of the resource is in the indicated category, which is very positive, as previous estimates had only inferred resources. In our opinion the estimators seemed to have used realistic assumptions. Previous estimates showed a resource of 2.77 million ounces, but they are not directly comparable, since they used different cut-off grades. The bottom line of this release is that it is positive and can be used as a base for a preliminary economic assessment in the near future. We have a speculative buy on the stock with a $5.96 per share target.

[Alexspushkin]

Hmmm....nice volume (252,000), but that 1/4 million shares only moved the share price by a measly 13 cents. Tells me there are still lots of sellers out there. We'll probably go down on Friday again. -Alex

[RicherNow]

I have been on a short hiatus (family i9llness) from mining business and have pared down my portfolio over the last few months fearing a down market as well.  I have continued to clean house and shed more shares recently at a loss.  In the past I have done well with CFO shares having sold most of my shares at $4.00.  The question now  for me is; Given the current state of the

[must_be_patient]

I agree with your assessment of CFO and the market in general. The summer doldrums are a great time to patiently buy juniors that tend to get forgotten every year for some reason. However, I did buy back into CFO recently with a 1/3 size position just in case. I'm hoping for a chance to buy more in July/August before the annual fall/winter junior festival.